Subway FDD Analysis

Risk Score: C+QSR / Sandwich~20,000+ (as of 2024) unitsFDD Year: 2024

3Red Flags Identified

Read our full review: Subway FDD Review: What Franchise Buyers Need to Know in 2026 →

Top Findings

Item 19 — Wide Revenue Variance Across the System

Subway's sheer scale means system-wide averages are misleading. The range between top-performing and bottom-performing locations is enormous. High-traffic urban and highway-adjacent stores can generate $500K+ while struggling suburban locations may sit at $250K-$300K. The brand has publicly acknowledged that a significant portion of its US stores were underperforming before recent menu and operational overhauls. Post-2023 remodel requirements have improved unit volumes at refreshed locations, but older stores still drag down systemwide numbers. You need to study Item 19 data at the market level, not the national level.

Item 20 — Massive Unit Count Decline Over the Past Decade

Subway peaked at roughly 27,000 US locations and has closed thousands of stores since. The net unit count has been declining for nearly a decade. While the rate of closures has slowed under new ownership (Roark Capital acquired Subway in 2023), the trajectory is unmistakable. This is not a growth brand in the US. It is a turnaround story. Turnarounds can work, but the Item 20 data tells you this system has been contracting, and closures at this scale indicate structural unit economics problems that affected a wide swath of operators.

Item 7 — Low Initial Investment Relative to QSR Peers

Subway remains one of the most affordable QSR franchise entries. Initial investment ranges from approximately $230,000 to $510,000 depending on location type and market. That is significantly lower than most QSR competitors. The small footprint (typically 800-1,400 sq ft) and limited kitchen equipment keep buildout costs manageable. For buyers with limited capital, this is a legitimate advantage, but low entry cost is not the same as good unit economics.